The government said yesterday that it is not considering any proposal to provide duty concessions and exemption from local value addition to imports of electric vehicles into the country.


Elon Musk-led EV maker Tesla's entry into India has been a hot topic for quite some time now. The company is trying to reduce import duty on EVs in India. The company demanded 40 percent import duty for fully assembled. The company aims to differentiate electric vehicles from luxury cars.


 But the central government is proceeding without yielding to any pressure from Tesla. The Center has reiterated this several times. Now the government has reiterated its position on this matter. The government said yesterday that it is not considering any proposal to provide duty concessions and exemption from local value addition to imports of electric vehicles into the country.


Som Prakash, Minister of State for Commerce and Industry, said that there is no proposal now to exempt from local value addition cost or subsidize imports of EVs in India through import duties. In his written reply to the Lok Sabha, the minister said that the government has taken various measures to increase domestic and foreign investment in India to increase local value addition under the Make in India scheme.


 He said the government has approved the PLI scheme for battery storage of advanced chemistry cells at a cost of Rs 18,100 crore. The scheme encourages setting up of 50 GWh giga-scale manufacturing facilities in the country.


 At the same time, the Minister's remarks are significant as Tesla has demanded a reduction in import duty on EVs in India. Currently, cars imported as completely built units (CBUs) are subject to customs duty ranging from 60 percent to 100 percent depending on engine size and cost, insurance and freight (CIF) value.


 In November, Commerce and Industry Minister Piyush Goyal visited US-based electric vehicle company Tesla's manufacturing facility in Fremont, California. The company said it would double its imports of auto components from India. Tesla Inc chief Elon Musk met Prime Minister Narendra Modi in New York in June and after the meeting, Musk said he plans to visit India in 2024.